The American Chamber of Commerce in Korea (AMCHAM Korea) was very pleased to welcome
Secretary of Commerce Gary Locke and his delegation of four distinguished
Members of Congress to Korea
this week. Their visit symbolizes the
strong ties that underline the U.S.-Korea bilateral relationship – and also the
expectation that the U.S.-Korea Free Trade Agreement (KORUS FTA) will soon be
taken up by the legislatures in both countries for a vote.

AMCHAM Korea is the oldest and largest
foreign business association in Korea. We are a fully private organization, and we
have around 2,000 individual members coming from about 1,000 companies that
span all sectors of the economy – aerospace, automotive, agriculture, consumer
products, financial services, healthcare, education, professional services, and
many more. Our member companies are big
and small and employee hundreds of thousands of U.S.
workers throughout the United
States.

Our key message to Secretary Locke and
his delegation was that early ratification of the KORUS FTA is essential for
the continued success of U.S.
companies in the $1 trillion dollar Korean economy. Our members emphasized that they compete
head-to-head with European companies here, and once the Korea-EU FTA goes into
effect on July 1, European companies will have a significant cost advantage
over their U.S.
competitors. In addition, companies in
the Congressional districts of the Members who accompanied the Secretary noted
that they are already looking at changes in their supply chains as a result of
the Korea-EU and KORUS FTAs. If KORUS
goes into effect soon, this could mean significant increase in sourcing from U.S. suppliers.

At a large, luncheon meeting co-hosted
by AMCHAM Korea and the Korea FTA Alliance today in Seoul, the 300 members of
the audience were delighted to hear Secretary Locke state that the KORUS FTA is
a top priority for the Obama Administration.
The Secretary noted that this agreement is critical to the economies of both
the U.S. and Korea, and that
under the FTA, nearly 95 percent of bilateral trade in consumer and industrial
products will become duty free within three years of the date the FTA enters
into force. The U.S. International Trade Commission (ITC) estimates that the
KORUS FTA will increase U.S. GDP by at least $10 billion and increase U.S. goods exports to Korea by $10-11 billion annually.

In addition to the significant tariff
benefits this agreement will bring about immediately, the FTA will also help level
the playing field for American businesses, farmers, and workers by bringing new
predictability, transparency, and fairness into all aspects of the Korean
economy.

Passage of the KORUS FTA will not only
demonstrate U.S. leadership
in the Asia Pacific region, but it is also a key means for the United States
to reinforce its bilateral relationship with one of its most important allies. The U.S.-Korea alliance is a multi-faceted
bond that goes back more than half a century. This agreement will add an important
third pillar of economic integration to our already strong bilateral political
and military alliance.

We anticipate that the KORUS FTA will
be a win-win for the national interests of both countries by creating
unprecedented opportunities and economic benefits.

That is why it is so critical that
Congress does not wait, and is why the Secretary has made this very important
trip to Korea.